Good day Koalas!
The goal we had at the start of the week was to finish GREEN! While we know to be environmentally green is good, GREEN here means profit. Yes. The opposite of RED which is a loss. If you are green, the next picture is for you!
If you are not, think about what went wrong this week and try your best to make next week a better one. Remember that making money in forex is not an easy task. Hard work and effort must be there.
Ok. . . are you ready for this? Not everyone is going to like this.. turn away now if you are not feeling of the best lately…
Lets get to serious business now.
Yesterday we saw the US Unemployment Claims coming in worst than expected. Unemployment remains an anchor to this economic recovery of the US and a complete recovery of the job market seems to be a distance possibility in the near future. The initial excitement of the Euro Zone + IMF aid package for Greece had died down and the markets are once again demanding a higher premium to loan money to Greece.
The EUR/USD closed the forex gap moments earlier giving another bragging reason for folks who proclaimed that forex gaps will ALWAYS close. Once again i will like to mention that nothing in forex is 100%. You can understand what forex gaps are in this article.
The S&P 500 is slightly bearish today on reports of big companies missing their profit estimates.
Oil is currently trading at $85+.
Gold is down to $1141+. As gold is priced in US Dollars, it is facing pressure from a stronger USD.
The US economy gave us mixed data today. While the US Building Permits came out better than expected, Prelim UoM Consumer Sentiment was lower than hoped. Nonetheless, as buildings and housing can be a good stimulant for the economy, investors are hopeful.
Over in the Euro Zone, Greece requested for a meeting with officials from the European Union, ECB and IMF. This meeting is speculated to be a confirmation of sorts by Greece and the various parties on further details of the aid package should it be required. EU finance ministers informed that Greece should brace herself for the IMF conditions which will follow any assistance from the organisation. This may be in the form of further cuts and reduction of budget items including pension and compensation of civil servants. There is concern about further strikes as there is already unhappiness regarding the recent cuts by the Greek government to reduce the deficit. Risk aversion lurks around the corner.
As we prepare for the close of the trading week, there remains a speech by FOMC Member Hoenig. Be careful of unexpected moves.
Bullish relief may target 1.3550.
Further bearish momentum may see us testing 1.3455.
I am planning to finish up a few articles this weekend and i am excited! Things over at the koala’s page at Facebook seems to be doing well. We have 258 koalas there now and i welcome you to join us there! My only complain if any is the lack of koala chatter there.. so go over there and make some noiseeeeeeeeeeeeeeeeeeeeeeeeeee!!
Trade safely and remember today is CASH THE PIPS FOR BEER DAY!